How Thailand kept cigarettes cheap despite a tax hike

[rooster59]

How Thailand kept cigarettes cheap despite a tax hike

Smokers in Thailand have been paying considerably more for their cigarettes after the government introduced a tax increase earlier this year.

The three-percent tax hike caused cigarette prices in the country to go up by 30 to 76 cents and resulted in an immediate downturn in sales by around 15 percent.

But, in a move that upset anti-smoking campaigners, the government's own tobacco company responded to the new regulations by offering a cheaper alternative.

Full story: http://www.aljazeera.com/news/2016/06/thailand-cigarettes-tax-hike-160610134110349.html

ALJAZEERA 2016-06-11

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[The stuttering parrot]

Thaksin was an amateur!

Never a dull moment in Thai news.

From brothels to flying saucer temples tiger temples drunk monks bus crashes boat crashes etc etc

And just when you think we'll that was an entertaining week up bobs a government owned tobacco company that's producing cheap cigarettes to make you more healthy and save lives and it's not about the money.

You just can't make this s..t up!

[mtls2005]

And I'm sure the "quality" of these "cheaper alternatives" is cracking.

On the plus side, sales are down, which is the effect one would expect/hope for, especially if it prevents youngsters from taking up the habit.

[55Jay]

They do much better in the drugs trade. Unofficially, of course.

[CanInBKK]

I don't get why people are acting surprised Thailand has its own manufacturing of cigarettes, it's been done the government owned Thailand Tobacco Monopoly located near Queen Sirikit convention center for ages. Anyone who has ever gotten of the tollway between Rama 4 and Sukhumvit has driven right by it.

[overherebc]

I don't get why people are acting surprised Thailand has its own manufacturing of cigarettes, it's been done the government owned Thailand Tobacco Monopoly located near Queen Sirikit convention center for ages. Anyone who has ever gotten of the tollway between Rama 4 and Sukhumvit has driven right by it.

Don't know if you still can but at one time you could use it as a short cut to the far end of Soi 4.

[Rayk]

The tax hike was not 3%. The proposal I believe was a 10% take hike which in turn ended up becoming somewhere around 19%.

[daiwill60]

Where is the reference to Thailand in the video ???

[mtls2005]

I don't get why people are acting surprised Thailand has its own manufacturing of cigarettes, it's been done the government owned Thailand Tobacco Monopoly located near Queen Sirikit convention center for ages. Anyone who has ever gotten of the tollway between Rama 4 and Sukhumvit has driven right by it.

Pretty much moved all manufacturing up to the new plant in Rojana Industrial Park in Ayutthaya.

Still run sample batches, with central admin and employee hospital in Khlongtoei facility, some of which is transitioning to a park.

Still smells horrible when they're running trial batches of "tobacco-like" products.

Edited June 11, 2016 by mtls2005

[lostinisaan]

Where is the reference to Thailand in the video ???

I didn't see anything related to Thailand. Maybe the wrong movie?

[dick dasterdly]

The tax hike was not 3%. The proposal I believe was a 10% take hike which in turn ended up becoming somewhere around 19%.

I think you're right.

Anyway, cigarette and tobacco taxation has little (nothing?) to do with discouraging smokers - its just an easy way for governments to raise money.

[LukKrueng]

The tax hike was not 3%. The proposal I believe was a 10% take hike which in turn ended up becoming somewhere around 19%.

L&M went from 66 to 87, 31.82%...........

[mki8]

It's not about being gov owned, but the new brand they have made an released perfectly timed with tax hike, which will probably be regular now, shows what one learns when they take a trip to speak with uk pm, picked up a few tips, expect more of the same to come.

Also good name, just copy thailands most popular app

[sanukjim]

The answer is easy,They Buy The Cheapest Tobacco.

[Mickmouse1]

I hope that cheaper alternative is "GREEN" ??

[Mickmouse1]

It is illegal to bring/ smoke ciggies in Brunei.Usually smuggled in or through diplomat friends one can get them.Last 4 weeks no luck..no smoke which is good apart from the withdrawal symptoms one has to endure in the first few days

[George FmplesdaCosteedback]

The government's own tobacco company? For F#ck's sake...

Considering you have 2k+ posts you sound like you just got off the boat?

Makes perfect economic sense for the government to have its own cigarette company.

Who do you think would own The Tobacco Monopoly of Thailand, BAT or Phillip Morris?

Duhhh!

[George FmplesdaCosteedback]

The tax hike was not 3%. The proposal I believe was a 10% take hike which in turn ended up becoming somewhere around 19%.

Very True, it's got to be biggest 3% ever, Marlboro went from 95B to 125B which is nearly 30%.

[taotoo]

It is illegal to bring/ smoke ciggies in Brunei.Usually smuggled in or through diplomat friends one can get them.Last 4 weeks no luck..no smoke which is good apart from the withdrawal symptoms one has to endure in the first few days

Can you vape there?

[jeab1980]

Let's face it most Thais smoke there choice most farangs drink there choice. Thais don't get paid a lot of Bht for a full days work so keeping a luxury to then ie fags at a low price to me is a sound move. I am an ex 100 + a day smoker (10 years now a non smoker) however I'm not the preaching kind it's up to individuals to decide not the no smoking brigade. As for Tax on fags look at the UK £5 a pack of 20 how much goes to the UK government even though they constantly say smoking is bad for you. OK then BAN the sale if cigarettes easy but oh no they would lose billions of pounds each year on the tax they get. So another form of government in bed with the tabacco industry. So really thai government own tabacco company just cuts out the middle men

[Jedsada3]

2-3 decades ago I read a study made by German Economics students which results showed why a country can't survive without smokers.

I don't find it on the net.

The conclusion was that if everyone stops smoking overnight, the country would go bankrupt within a few years:

• tobacco farms, tobacco factories will close --> many jobless
• some paper factories, print companies, chemical factories (and their suppliers) will close or have less work --> many jobless
• subcontractors of those factories will lose work --> jobless
• shops will lose customers --> jobless
• less smoke related sickness --> less patients in hospital --> jobless
• sick people will be sooner healthy --> shorter stay in hospital --> jobless
• hospital subcontractors (food, hygiene, drugs, technicals...) less work --> jobless
• less tax income means less money to spend for infrastructures --> less work for subcontractors --> jobless
• no smoker live longer --> longer retired --> longer retired money
• ... and a lot more facts which I don't remember

The consequence would be total collapse of the economy...

It would take many years to get the stability back.

If I find the study on the net I will post the link here.

[MaiChai]

Something morally wrong with a government manufacturing and selling cigarettes. Especially when those who get ill from it using government subsidised health care. Then the government increasing taxes on cigarettes, presumably to deter people smoking? Or is it just about making more tax money?

[dutchdog3000]

The tax hike was not 3%. The proposal I believe was a 10% take hike which in turn ended up becoming somewhere around 19%.

correct Rayk LM increase is 19%

[metisdead]

A post containing profanity has been removed as well as a reply.

[AGareth2]

want to try these cheaper smokes

does anyone know the brand names?

[newatthis]

want to try these cheaper smokes

does anyone know the brand names?

My local mum and pop shop sell Bond for 45baht a packet.

[AGareth2]

are those the new ones?

[mtls2005]

Cheap TTM brand following tax hike

February 29, 2016

The Thailand Tobacco Monopoly (TTM) will launch a new, cheaper cigarette brand to keep smokers from rolling their own or buying illicit tobacco products due to higher prices from a recently imposed tax hike, reports the Associated Press.

The new brand, which will be slightly smaller in diameter than standard brands, will cost about thb40 ($1.12) a pack and will be launched on April 1. Other brands now range from about thb48 to thb130.

“We are concerned that smokers will choose other alternatives that will severely harm their bodies, such as low-quality hand-rolling tobacco,” TTM Director Daonoi Suttiniphapunt, director of Thailand Tobacco Monopoly was quoted as saying.

http://www.tobaccoreporter.com/2016/02/ttm-to-launch-new-brand/

Khrong Tip and Wonder seem like local brands? "Wonder" may be the generic equivalent. It looks like "Line" might be this new, inexpensive brand?

http://www.thaitobacco.or.th/en/ttm-products/

Maybe just pop in a local shop and look for the least expensive brand (40 baht/pack) with the TTM logo.

http://www.thaitobacco.or.th/th/

[Chris Lawrence]

Tobacco was introduced to help farmers change over from opium. If they were serious about the health outcome of their people the Government would need to tax cigarettes much higher, say 200 to 400 baht a packet. But doing this would send sales down and a legitimate income stream for the Government.

[melvinmelvin]

my fags (imports from Korea) went from 100/pack to 135/pack (at 7/11s and Family Marts)

that represents quite a steep increase

wonder who makes a fortune on this, the shops or the government